Treasurer to seek council nod for deposits

CEBU, Philippines - Acting Cebu City Treasurer Ofelia Oliva yesterday assured the city legislators that she will no longer make time deposits of the city’s funds without the authority of the City Council.

Oliva also promised the City Council that she will recommend to Mayor Michael Rama to revive the Financial Management Advisory Committee (FIMAC) to serve as his advisers on financial-related matters in City Hall.

Oliva has been invited by the City Council yesterday so she can explain why she made time deposits with the Philippine Veterans Bank in the amount of P165 million even without the authority of the city legislators.

At first, Oliva insisted that the policy adopted by the Bureau of Local Government Finance (BLGF) is that there is no need for the city or municipal treasurers to ask permission from the legislative bodies if they make bank deposits, unless if it is a new transaction with a new depository bank.

Councilor Sisinio Andales, chairman of the City Council’s Committee on Laws, reminded Oliva of an existing policy of the Commission on Audit that while the government treasurers are allowed to make deposits, they should first ask permission from the council.

Oliva insisted that while COA has the right to issue policies, it is also the BLGF that is tasked to create the Implementing Rules and Regulations (IRR).

According to Oliva, the city would benefit from her move to put P165 million in a five-year time deposit because the principal amount will earn more than P700,000 every month or P35 million for the whole duration.

The treasurer explained that because the city has a huge amount of unused funds, she decided to place it in time deposit as part of the city’s investment strategy.

The records showed that the City Treasurer’s Office was authorized by the City Council in 2001 to make time deposits, but Councilor Margarita “Margot” Osmeña said such authority already expired last December 31, 2001.

“It is my honest belief that said authority has been vested to the City Treasurer being a member of FIMAC,” Oliva said.

She added that it has already been a practice of the City Treasurer’s Office, even in other Local Government Units, to have time deposit because of higher interest rates.

“Anugon man gud kaayo ang atong kwarta nga magpundo lang sa bangko. Ang nakadaut gud nato kay kusog kaayo ta nga mangolekta og buhis apan hinay kaayo ta mamayad mao na nga maayo pa nga atong ibutang sa time deposit,” she said.

Once FIMAC will be revived by Rama, it will be headed by the City Administrator if the mayor will follow the previous executive order of then mayor Alvin Garcia. FIMAC members are the Budget Officer, City Accountant, Planning and Development Officer and a City Council representative to be appointed by the mayor. – (FREEMAN)